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5.25% Savings Account at a California Bank (Independence)

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Update 6/14/08: Savings account yield has fallen to 2.75% APY.. See bottom of post for rate history.

Independence Bank is offering a 5.25% APY savings account. The minimum to open is $100. All balances are eligible for the full interest rate. The 5.25% APY requires that a checking account with a VISA check card be opened. It wasn't clear from the webpage which checking account was required. Based on an email reply from the bank, either the Totally Free Checking or the Higher Yield Checking are eligible.

You can apply for both the savings and checking account by mailing in the application. However, I was told that they do not open accounts for out of state customers. Regarding credit pulls during the application process, the CSR stated they only do an inquiry with ChexSystems.

The bank does provide online banking which allows ACH bank-to-bank transfers. Transfers are free.

Independence Bank has two branches at Newport Beach and San Juan Capistrano, California.

The bank is rather young. It has been FDIC insured since September of 2004. It's also a small bank with only 20 employees and $205 million in assets. The bank is rated 3 out of 5 stars at Bankrate.com (performing).

Credit for finding this bank goes to the FW MMA rate thread.

Update 5/31/08: Savings account yield has fallen to 2.85% APY.
Update 5/3/08: Savings account rate has fallen to 2.95% APY.
Update 4/26/08: Savings account rate has dropped to 3.05% APY. With checking and direct deposit, the yield is 3.30% APY.
Update 4/19/08: Savings account rate has dropped to 3.20% APY. With checking and direct deposit, the yield is 3.45% APY.
Update 3/29/08: Savings account rate has dropped to 3.45% APY. 3.71% APY is available with checking and direct deposit.
Update 3/22/08: Savings account rate has dropped to 3.60% APY.
Update 3/15/08: Savings account rate has dropped to 3.80% APY.
Update 3/08/08: Savings account rate has dropped to 3.95% APY.
Update 2/23/08: Savings account rate has dropped to 4.05% APY.
Update 2/09/08: Savings account rate has dropped to 4.15% APY.
Update 11/24/07: Savings account rate has dropped to 4.50% APY.
Update 9/23/07: Savings account rate has dropped to 4.80% APY.

  Tags: California, Independence Bank, savings account

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Comments
2 Comments.
Comment #1 by Banking Guy (anonymous) posted on
Banking Guy
Savings account rate has dropped to 5.05%.

1
Comment #2 by Unconditional Love (anonymous) posted on
Unconditional Love
Rates at this bank have fallen to 4% APY and below.

1